HDFC makes NEFT, RTGS transactions free; other banks may follow

Newspatrolling: In a welcome development for HDFC customers, the country’s leading bank has decided to make NEFT and RTGS transactions free of cost. Currently, a minimal charge is applied for NEFT and RTGS transactions, but even that will be abolished by HDFC bank. The free NEFT and RTGS transactions will come into effect from November 1. The move is being seen as a means to promote digital economy. The bank is also working on the other side of the spectrum by increasing the charges on cheque based transactions. Issue of cheque books will also cost more. These steps are likely to motivate people to shift to NEFT and RTGS, the vital pillars of banking transactions in a digitized world. “The revision in NEFT/RTGS online charges is applicable across all retail savings, salary and non-resident customers, effective November 1, 2017,” HDFC Bank said.

With HDFC Bank taking the lead in making NEFT and RTGS transactions free, experts said that other banks may also follow suit. The rates and charges of various banks are more of less the same, since the competition is tough and banks cannot afford to be entirely different. RTGS and NEFT are important components of the banking system, and rules and charges related to the same have remained almost same across all major banks. Now, that the NEFT and RTGS transactions have been made free by HDFC Bank, other banks are most likely to announce a similar decision.